Which of the Following Actions Is Consistent with the Basic

question 205

Multiple Choice

Which of the following actions is consistent with the basic economic postulate (the guidepost) that incentives matter?

• A) Consumers buy fewer potatoes when the price of potatoes increases.
• B) A politician votes against a pay raise for himself because most of his constituents are strongly opposed to it and would vote against him in the next election.
• C) Farmers produce less corn because corn prices have declined.
• D) All of the above.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Federal Statute

A law enacted by the federal government of a country.

State Constitutional Provision

A legal provision or amendment within a state's constitution that outlines specific rights, responsibilities, or regulations unique to that state.

Procedural Due Process

Procedural due process is the legal requirement that the state must respect all the legal rights owed to a person, including ensuring fair procedures when it seeks to deprive a person of life, liberty, or property.